Powell's dovish tone is resounding! BTC is surging to $117,000; is a rate cut storm about to ignite the crypto market?
Attention crypto enthusiasts! Federal Reserve Chairman Powell has just released a heavyweight signal, Bitcoin skyrocketed to $117,000!
On August 22 local time, Powell clearly stated at the Jackson Hole Global Central Bank Annual Meeting that the Federal Reserve's policy stance may need to be adjusted, and the downside risk in the labor market is rising. Although he did not directly mention 'rate cuts', the market has already voted with real money—before he finished speaking, the price of Bitcoin soared from $109,000 to $117,000 within 24 hours, setting a new historical high!
How does the expectation of rate cuts ignite BTC?
The liquidity gate is about to open.
After Powell released the 'dovish' signal, market bets on the probability of a September rate cut surged to 87%! According to the Chicago Mercantile Exchange data, the Federal Reserve may cut rates twice this year, each by 25 basis points.Rate cuts mean increased dollar liquidity and reduced funding costs, and Bitcoin, as 'digital gold', directly benefits!
Historical data confirms: When the Federal Reserve cut rates to zero in 2020, BTC skyrocketed from $10,000 to $60,000; after a rate cut in September 2024, Bitcoin surged 17% in one month. This time, institutions predict even crazier—Goldman Sachs directly calls for 'three rate cuts in 2025', and Bitcoin may soar to $150,000-$300,000!Institutional funds are pouring in wildly.
During the rate cut cycle, traditional funds urgently seek inflation-resistant assets. The scarcity of Bitcoin (total supply of 21 million coins) becomes a tool for hedging against fiat currency devaluation. MicroStrategy has hoarded 190,000 BTC, and giants like Tesla and Square are also quietly laying out their strategies.When the Federal Reserve's 'money printing' becomes the norm, Bitcoin serves as a 'super reservoir' for capital flight to safety!Technical and emotional resonance.
Currently, the BTC price has broken through the key resistance level of $110,000, and on-chain indicators show 'oversold reversal'. Analyst @Crypto_Ciara on platform X points out:Bitcoin's dominance has reached 62.3%, indicating that funds are flowing back from altcoins to Bitcoin.. The Federal Reserve's rate cut expectations undoubtedly add fuel to market sentiment!
Beware! Potential risks cannot be ignored.
Although the interest rate cut is clearly favorable, two points must be noted:
Regulatory storm: The EU MiCA framework has been implemented, and the US SEC may increase compliance reviews, which could trigger short-term volatility.
Data dependency: If the September CPI and non-farm data exceed expectations, the Federal Reserve may slow down the pace of rate cuts, and it is necessary to closely monitor the inflation report on the 10th of each month.
Powell's 'dovish' tone has sounded the charge for the crypto market, and Bitcoin's status as a macro hedge tool is becoming increasingly prominent. Before a rate cut in September, BTC is expected to challenge $120,000; if three rate cuts occur this year, 2026 may witness a historical moment of $300,000!
The weekly head and shoulders pattern has completed a breakout, confirming the neck line at $117,000! The Fibonacci extension points directly to $155,000, perfectly resonating with the three rate cut cycles predicted by institutions. The MACD histogram is quietly converging, downward momentum is weakening, and the Bollinger Bands are opening upwards; a short-term pullback presents a buying opportunity! Although RSI is overbought, historical data shows that similar patterns only pull back 10-15%, while ETF funds are absorbing 12,000 BTC daily; institutions are voting with real money—are you joining this bull market?
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